Ahead of the G20 summit in Germany on July 7-8, an international body for global financial system, the Financial Stability Board (FSB), in its status report ‘progress in financial regulatory reforms in various jurisdictions’ has placed India in the league of countries that are compliant or largely compliant on implementation of priority area reforms.
In the report, India has been found to be compliant on the Basel III reforms in area of risk-based capital, while on the liquidity coverage ratio, it is listed as largely compliant. With regard to the Net Stable Funding Ratio (NSFR), India figured among the countries where “final rule published but not in force, or draft regulation published”. Regarding compensation related reforms, it was placed among the jurisdictions where all except a few (three or less) FSB Principles and Standards implemented.
The FSB report further said that in the shadow banking, India remained among the jurisdictions where the final implementation measures are in force for valuation, liquidity management and stable net asset for monetary market funds, while final adoption measures were taken for implementing an incentive alignment regime and disclosing requirements on securitisation. It further added that on trade reporting in the over-the-counter derivatives market, India was among the countries where necessary regulatory framework was being implemented.